BMI View: The food and drinks sector in Ethiopia offers both opportunities for growth and enormous
structural challenges. The large size of the market (Ethiopia has one of the largest populations globally)indicates a large potential consumer market and the country is experiencing steady economic growth anddiversification which will boost household spending capacity. Despite these positive factors, however, themarket remains unattractive due to a range of factors such as the restrictions placed on foreign investmentand pervasive poverty which excludes much of the market from formal food and drink sales.
Key Views And Developments
The lack of food security is a major an ongoing risk in Ethiopia. A recent Oxfam International reportnotes that around 700,000 people are at risk of starvation in the Somali region of Ethiopia while acrossthe country some 8.5mn people are considered vulnerable. The situation is not expected to significantlyimprove until new harvests in 2018.